SUBSIDIARY COMPANIES - ITC Ltd

NOTES TO THE FINANCIAL STATEMENTS (Contd.)
(All amounts in `, unless otherwise stated)
180
As at As at
31st March, 2012 31st March, 2011
16. Other Income
Interest Income 45,144 63,724
Dividend Income — 68
Service Income 60,00,000 42,00,000
Provision no longer required written back 7,50,000 9,11,182
Miscellaneous Income — 50,000
Total 67,95,144 52,24,974
17. Employee Benefit Expense
Salaries, Wages and Bonus 98,100 98,100
Total 98,100 98,100
18. Depreciation and Amortization Expenses
Depreciation 1,83,088 1,94,453
Amortization 53,535 56,353
Total 2,36,623 2,50,806
19. Other Expenses
Professional and Legal fees 17,77,658 14,92,951
Travelling Expenses 85,703 29,806
Audit Fee 75,000 75,000
Tax Audit Fee 25,000 25,000
Reimbursement of expenses (including service tax) 17,978 15,100
Reimbursement of expenses incurred by
Subsidiary Company
1,72,944 1,70,463
Miscellaneous Expenses 44,811 76,75,676
Total 21,99,094 94,83,996
20. Contingent Liabilites
Claims against the Company not 37,21,426 37,21,426
acknowledged as debts Lease tax
on account of non-accrual of lease rental
Total 37,21,426 37,21,426
21. Assets held for Sale
On February 14, 2012, the Board of Directors of the Company has approved the
plan for disposing the Buildings. Carrying Amount as at March 31, 2012 is
Rs. 3,177,433 (March 31, 2011: Rs. 3,344,667).
22. Taxes on Income
22.1 No provision has been made for Current tax during the year because of carry
forward loss under the Income Tax Act.
22.2 The Company has not recognized the net deferred tax assets, in respect of
accumulated losses and unabsorbed depreciation in view of the uncertinity of
availing the benefit in near future. Break up of such net deferred tax asset is given
below:
Deferred Tax Liabilities:
Depreciation
Deferred Tax Assets:
(1,38,69,220) (1,21,99,728)
Accumulated business losses 1,77,12,028 10,70,58,857
Unabsorbed depreciation 7,48,51,668 7,93,70,975
Deferred Tax Asset/(Liability) 7,86,94,476 17,42,30,104
BFIL FINANCE LIMITED
As at As at
31st March, 2012 31st March, 2011
23. Earnings per share
Profit/(Loss) after tax 42,61,327 (46,07,928)
Weighted average number of equity shares 2,00,00,000 2,00,00,000
Basic and Diluted earnings per share
(face value of Rs. 10)
0.21 (0.23)
The earnings considered in ascertaining the Company's Earning Per Share (EPS)
comprise net profit / (loss) after taxation. The number of shares considered in
computing Basic and Diluted EPS is the weighted average number of shares
outstanding during the year.
24. Segment Reporting
The Company operates in a single business segment and hence no further disclosure
is being made.
25. Micro, Small and Medium Enterprise Development Act, 2006
There are no Micro and Small enterprises, to which the company owes dues, or
with which the company had transactions during the year, based on the information
available with the company.
26. Related party disclosures
(a) Names of related parties and nature of relationship:
Where control exists
Holding Company: ITC Limited
Subsidiary Company:
Limited.
(b) Transactions/Balances
MRR Trading & Investment Company Limited
Holding Company Subsidiary Company
31st March 31st March 31st March 31st March
2012 2011 2012 2011
Transactions:
Service Income 60,00,000 42,00,000 — —
Reimbursement of expenses
Balances at the year end
— — 1,72,944 1,70,463
Receivables — 33,65,400 — —
0% Non-Convertible debentures 15,00,00,000 15,00,00,000 — —
Unsecured Loans (Interest free) 32,54,11,077 32,54,11,077 — —
27. The financial statements for the year ended March 31, 2011 had been prepared as
per the then applicable, pre-revised Schedule VI to the Companies Act, 1956.
Consequent to the notification of Revised Schedule VI under the Companies Act,
1956, the financial statements for the year ended March 31,2012 have been prepared
as per Revised Schedule VI. Accordingly, the previous year figures have also been
reclassified to conform to current year’s classification. The adoption of Revised
Schedule VI for previous year figures does not impact recognition and measurement
principles followed for preparation of financial statements.
STATEMENT REGARDING SUBSIDIARY COMPANIES:
Pursuant to Section 212(1) and (3) of the Companies Act, 1956
MRR TRADING & INVESTMENT COMPANY LIMITED
(a) Holding Company’s interest:
50,000 Equity Shares of Rs.10/- each, fully paid-up
(b) Net aggregate amount of Subsidiary’s profit/(loss) not dealt with in the Holding Company’s accounts:
(Amount in Rs.)
(i) for the Subsidiary’s financial year ended March 31, 2012 Nil
(ii) for the previous financial years (416,160)
(c) Net aggregate amount of Subsidiary’s profit/(loss) dealt with in the Holding Company’s accounts:
(i) for the Subsidiary’s financial year ended March 31, 2012 Nil
(ii) for the previous financial years Nil